Authorities say the incident began around 9:00 a.m. Thursday at 10th and Ritner.
The barricade incident is now over, police say, and the children were not harmed.
The woman, believed to be 29 years old, is in custody. Her name has not been released.
Three people were stabbed - a 69-year-old man is in critical condition with stab wounds to the back and chest, a 50-year-old woman is in stable condition with a stab wound to the left arm and a 32-year-old woman is in stable condition with stab wounds to the right arm and right breast.
It is not yet known why the woman stabbed the victims.